Data is increasingly becoming the cornerstone of FX market participants’ business models, but what does this mean more broadly for the industry?
This will be one of the key questions addressed on the panel session, “Learning to Thrive in Data Driven Markets” at the Profit & Loss Scandinavia conference taking place on October 10th in Copenhagen.
On the buy side, there is increased scrutiny around best execution, driven by a combination of new regulatory requirements, the increased availability of transaction cost analysis (TCA) tools and a growing sensitivity to market impact when trading FX. But can they access all the data that they need to effectively ensure best execution, and what are the challenges associated with subsequently using this data to drive meaningful results in their trading activity?
Moreover, some buy side firms are looking to incorporate new sources of data in order to gain an edge over their competitors, but in a market that appears to be drowning in data, are there really alternative data sources available that can enable them to do this?
On the sell side, banks are already consuming vast amounts of data, but they are doing so on an ever-larger scale as they price clients in a more dynamic and – in theory – better way. What are the implications of this data-driven pricing for clients? Will this data-driven approach change the manner in which they service their clients going forward?
Meanwhile, platform providers have recognised that with liquidity becoming more commoditised – at least for trading G10 spot FX – it is how they help their users manage that liquidity that is of real value, and that data is the key to doing this. In addition, with brokerage fees coming under continued pressure, many platform providers are now looking at new ways to package and sell data to market participants in order to create new revenue streams. How successful will they be in this area and do they really have differentiated data to sell?
These are just a few of the questions that will be tackled by an expert panel of speakers at Profit & Loss Scandinavia. Click here to register for the event, which is free for buy-side and bank attendees based in Scandinavia.
Lydia Solinski, Head of Market Data, 360T
John Ashworth, CEO, Caplin Systems Ltd
Salla Franzén, Group Chief Data Scientist, SEB
Paris Pennesi, Head of Quant Strategies for Spot FX & Commodities, HSBC